No conditions connected with repayment. Have a look at the

note. Are there any conditions mentioned?

Mr Carter: Yeah, well, here's one. It says that as soon as John

is paid out his inheritance, he'll start paying on the note.

I guess that's a condition, isn't it?

Ms Benton: Yes, it certainly is. Hmm. Er, this may cause you

problems, but let's just look at the final requirement. The

Note should state that the outstanding sum is either

Payable on demand or at a definite time. Is that written

anywhere on the note?

Mr Carter: No, nothing like that's written anywhere on it.

Ms Benton: Oh dear. Well, Mr Carter, it looks like out of six

Requirements for negotiability, your note only meets four.

Mr Carter: I guess we now need to talk about whether I can

Get my money out of this whole mess ...

Listening 2

Part I

Ms Turner: So, how are things coming along with the Bifler

real-estate deal?

Ms Wadman: Good, quite good, except for one thing. That's

Why I came over here to talk to you today. We have a bit of

A problem at the moment.

Ms Turner: Oh? What is it?

Ms Wadman: Well, the agent of the buyers group insists on

Signing the promissory note for the down payment on behalf

Of the entire group.

Ms Turner: Why's that?

Ms Wadman: Well, according to him, the other three principals

in the deal aren't available for signing right now. And, as

you know, our client's in a hurry to sell the property, so he'd

Also like to get the note and close the deal as soon as

Possible. The buyers seem to be in a hurry, too - they really

want this property. They're planning to build a big shopping

Mall on it.

Part II

Ms Wadman: They're planning to build a big shopping mall on it.

Ms Turner: Well, what do you mean by 'not available'?

Ms Wadman: One of the principals is in the hospital, another

One is out on his boat somewhere in the Caribbean and the

third's in jail.

Ms Turner: In jail?

Ms Wadman: On a tax-evasion charge, I'm told. He'll be out in

A few months.

Ms Turner: Right. Doesn't sound like a very trustworthy

business partner, does he? Well, even so, it's important

That our client realises that he puts himself in an

Unfavourable position if only one person signs the

Promissory note for all the principals. Even if all the parties

involved are in a hurry to complete the deal, it's important

Under the circumstances that all the principals sign the

Note.

Ms Wadman: Why's that?

Ms Turner: Are you familiar with Ness versus Greater Arizona

Realty, Inc. and revisions to the UCC affecting that

decision?

Ms Wadman: No, I'm not. Could you explain?

Ms Turner: Well, er, basically, Ness versus Greater Arizona

Involved a situation which was very similar to this case. A

Promissory note was signed by only one principal who was

Acting as an agent on behalf of a group of principals who

Wanted to buy real estate. They were unable to pay the note

And were sued by the drawee. However, the court ruled that

no one's liable on an instrument unless he's signed it.

Ms Wadman: I see.

Ms Turner: However, after the revisions to the UCC, a principal

Date: 2015-12-11; view: 758